Fiat Chrysler, Ferrari renew job contracts for Italy workers

FILE PHOTO: The logo of Ferrari is pictured during the first press day of the Paris auto show, in Paris, France, October 2, 2018. REUTERS/Benoit Tessier

MILAN (Reuters) - Fiat Chrysler (FCA) has reached an agreement with trade unions to renew the contract for 66,000 of its workers in Italy, the Italian-American carmaker said on Monday.

The agreement, which will run until 2022, includes a 2 percent salary increase per year and a boost to the annual performance-based bonus linked to achieving productivity and efficiency goals.

FCA said in November it would spend more than 5 billion euros ($5.61 billion) on new models and engines in Italy over the next three years to try to make better use of factories and boost jobs and margins.

In a separate note, luxury group Ferrari said it had also signed an agreement with unions to renew its contract for all workers in Italy until 2022.